Unlike traditional trusts, the South Dakota Purpose Trust – considered the most flexible in the nation – is a type of trust which has no beneficiaries. A Purpose Trust can be established to hold and protect assets for a specific purpose and not for the benefit of beneficiaries.
Similar to a charitable remainder trust which exists to support a particular charity or charitable intent, the Purpose Trust can be created to support or maintain a specific purpose, in perpetuity uniquely under South Dakota law.
Examples of a Purpose Trust include: Business Interests; Private Trust Companies (PTCs); Royalties; Real Estate; Art; Cryptocurrency; Pet Care; Grave Sites; and Cryogenics.
Settlors of Purpose Trusts and their advisors can harness the power of South Dakota’s trust laws – dynasty trusts, privacy, and asset protection – while maintaining a great deal of direction and control utilizing the directed trust structure, appointing a trust protector, and naming an enforcer (which can be the same person). As long as the Purpose Trust is established for a valid purpose (not in violation of public policy), the trust can exist forever or be converted to a beneficiary trust at the direction of the trust protector if the purpose comes to an end.